The Business of Government Chapter 7 Section 2

Lecture Focus Question How did foreign and domestic policies change under Harding and Coolidge?

The Russian Revolution Communism Govt owned all land and property Single political party in the govt Needs of the country come first Openly hostile to American values

Red Scare Red scare: an intense fear of communism Schenck v. U.S. Govt is justified in silencing free speech when there is a “clear and present danger” Palmer Raids “subversives” arrested without evidence Sacco and Vanzetti Italian immigrants arrested for murder Ties to anarchist groups Little evidence Executed Real reason for execution → they were immigrants with radical beliefs

Nativism Flares Up Patriotism Religion Urban conditions Jobs Red Scare Immigration quotas

America Swings Right 3 Republican Presidents Harding Coolidge Hoover Americans called for isolationism Harding called for disarmament Kellogg-Briand Pact Return to laissez-faire “Return to normalcy”

HARDING COOLIDGE HOOVER

The Harding Administration Pledged a “return to normalcy” Favored big business Protective tariffs raised Favored laissez-faire approach The Ohio Gang cashed in to the tune of millions of dollars Teapot Dome Scandal: illegal transfer of oil reserves approved by Harding

Coolidge Prosperity Coolidge took presidency upon Harding’s death “Silent Cal” placed trust in business “The man who builds a factory builds a temple” Goals: reduce national debt, increase incentives for business Oversaw incredible national prosperity

Collecting War Debt GB and France owed U.S. a lot of $ after WWI Started having trouble making payments GB and France relied on reparations payments from Germany Germany unable to make payments Dawes Plan: plan in which U.S. loaned money to Germany, enabling them to make reparations payments

Collecting War Debt cont’d

Trouble Brewing Farmers were struggling to keep their land Labor unions demanded higher wages and better working conditions Jim Crow laws in the South enforced segregation Mexican Americans faced shamefully low wages → forced to leave U.S. War debts and reparations “Silent Cal” remained silent

Lecture Focus Question How did foreign and domestic policies change under Harding and Coolidge?